Basic research/comps moving to India? interesting…less junoir analysts? thoughts?

Although they can move a lot, the actual analysts will have to remain in north america. And we know that analysts typically grow up from either senior banking roles or come through the research associate pool most of the time. So although lots can be shifted around hte planet, i suspect not all of it can be or staffing north american relationship based jobs will start to become challenging. Given that the ‘transfew jobs to india’ hasn’t caught on in major force despite being a topic of conversation for at least 2 1/2 years by my count says that the banks realize they can’t offload everything.

It has been happening for years. I know of numerous Senior Analysts that replaced one of their US based analysts with India based analysts. I believe the Senior Analysts are fine because Senior Analysts are more Salesmen than analysts anyway. The associates and analysts under the Senior Analysts are being outsourced successfully. Remember ER is a Cost center and not a profit center and costs need to be cut.

I think a lot of research work requires some industry insight which i dont think people in other countries might neceassrily have . Unless it is just pure number crunching which can be done anywhere . It would take a lot of time and a lot of training to get people outside of the country up to par .

Another issue is the labour constraint in India, even in the BPO field they are running out of suitible candidates to fill the position’s that are availible and im sure people who would be capable analysts are even harder to come by then people who can answer tecnical questions on how to set up a router or credit card account.

The co. i work for has outsourced some stuff out and i deal with these people everyday , It is not fun …it seems like they hire anybody with a pulse …they are good at doing mundane tasks but anything beyond that is too much for them . That being said there are tons of bright , intelligent , ambitious people in India however very few of them work in back office roles .

it’s recruitment season at my college in India. Knowledge process outsourcing (KPO as Bck office is known here) seem to be high on those with Finance Majors. Brand name counts as well… I mean probably Lehman Bro or Morgan Stanley might be the most sought after companies. Primary roles are that of a Senior Analyst/Analyst. Job content would be Valuations or Equity researh in most cases.

I suspect that any functions that do not provide critical information advantages and can be defined by some algorithmic (not necessarily computer, but involving relatively little subjective analysis) process are vulnerable to outsourcing. I would think that companies would still want to be very careful about critical information leaks. You want those employees to employed in countries where there is well established rule of law, intellectual property protections, and relatively low levels of corruption, so you can go after them if leaks start to affect your business (of course in some countries where there is corruption, you can just go and kill them, or their families… no disPutin that!) The article does raise an interesting question about how the recruitment of future industry leaders will take place. It suggests that the personal relationships that are developed are key to moving up the ladder, and there will be a smaller pool of “headquarter” people to choose from. I suspect this will not be as much a problem as they make it out to be. There will still be exchanges of personnel between home and away offices, and I think that you would observe more lateral transfers happening among management teams.

i wonder if this is the rise of "White - collar sweat shops "